Do Creditor Rights Influence the Use of Relationship Lending?

64 Pages Posted: 5 Feb 2018 Last revised: 1 Apr 2018

See all articles by Jeremie Bertrand

Jeremie Bertrand

EDHEC Business School

Jean-Christophe Statnik

University of Lille II - University of Lille LSMRC & ISA

Date Written: April 1, 2018

Abstract

Do creditor rights influence the use of relationship lending? With data from EFIGE, gathered during a 2010 survey spanning seven European countries, this article addresses this question. First, it determines that banks and firms are more willing to implement relationship lending technology in weak legal environments. Second, to explain these results, the authors demonstrate that relationship lending technology can complement poor creditor rights and, by doing so, assure contract completion between creditors and debtors. These results are robust across several tests

Keywords: Legal Environment, Creditor Rights, Relationship Lending, European countries

JEL Classification: G21, N20, L14

Suggested Citation

Bertrand, Jeremie and Statnik, Jean-Christophe, Do Creditor Rights Influence the Use of Relationship Lending? (April 1, 2018). Available at SSRN: https://ssrn.com/abstract=3102073 or http://dx.doi.org/10.2139/ssrn.3102073

Jeremie Bertrand

EDHEC Business School ( email )

58 rue du Port
Lille, 59046
France

Jean-Christophe Statnik (Contact Author)

University of Lille II - University of Lille LSMRC & ISA ( email )

1, rue de Mulhouse
Lille, 59000
France

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